Biosimulation refers to computer aided simulation of biological processes and systems, an integral part of systems biology used in drug discovery and development. This report will analyze the potential of biosimulation in drug discovery and development. Biosimulation is used across the drug discovery and development program (such as target identification, target validation, lead discovery, lead optimization, preclinical and clinical test).

The global biosimulation market was valued at $432 million in 2011 and is expected to reach $1.2 billion by 2017, at a CAGR of 18.5%. Modelling and simulation in preclinical and clinical stages contributed maximum share (60%) to the global biosimulation market in 2011.

The major driving factor for this market is the cost and time spent on drug discovery and development programs and failure of drug candidates in the late development stages. Pharmaceutical companies around the globe spent around $68 billion in 2011 in drug discovery and development programs, many of the drug discovery and development programs fail in the late stages of the clinical trials wasting all the years of efforts and money. There is a need for predictive technology which would outlay the outcome of a drug candidate in the discovery stages; biosimulation is one such technology which can bring down the cost on drug discovery and development programmes by focusing on promising lead drug candidates and experiments.

North America is the biggest market for biosimulation followed by Europe. North America which is the largest drug market in the world contributes one third for the global biosimulation market. Europe is the fastest growing market for biosimulation and the growth is attributed to the efforts of regulatory bodies in promoting new technologies in drug discovery and development. Asian market is still considered to be in development stages because of non availability of skilled workforce and infrastructure in place.

The global pharmaceutical market in 2011 was valued at US$880 billion with an annual growth rate of 4%-6%; it is expected to grow at 4%-7% through 2013. Pharmaceutical companies nearly spend 15%-17% of their revenues in R&D for development and discovery of new drugs. As in traditional research practices it takes about 11-14 years for a pharmaceutical company in developing a new drug. It is estimated that the cost of new drug from its initial research stage to market entry is around US$800 million to US$1.5 Billion for over a period of 11-14 years.

Although R&D spending of pharmaceutical companies grew by 147%, there is only a 38% increase in the overall new drug applications (NDAs) submitted to FDA, and for innovative new molecular entities (NMEs) is has increased by only 7%. The ever increasing cost of developing drugs and decrease in productivity of R&D is forcing pharmaceutical companies to look for other alternative tools and practices that would not only shorten the R&D time cycle but also reduce the cost involved in the drug discovery process. One such tool is the biosimulation which promises to reduce the cost of drug discovery by predictive modelling and simulation.

Biosimulation means simulation of biological process and systems by computers; it is an integral part of systems biology. Biosimulation in drug discovery and development is the use of biosimulation (modelling and simulation) in drug discovery and development process which may also be referred as Computer Aided Drug Design (CADD) where computer models and simulations are used in various stages of drug discovery and development process.

Global biosimulation market is expected to reach 1.2 billion US$ by 2017 with the annual CAGR of 18.50%, and accounts for nearly 20% of the global bioinformatics market for R&D in drug discovery and development. Biosimulation is expected to account for 5% of the total US$ 68 billion drug discovery market in 7 to 10 years.

In 2011, the global biosimulation market was valued at $432 million. North America is the major market for the biosimulation and has been driving the global market significantly. Growth in North America is majorly driven by pharmaceutical companies in search for new drugs, as many of the companies’ patented drugs are coming off the shelf. Search for new drugs and cost reduction in R&D has been driving the growth of biosimulation. Europe is the second major market for biosimulation products majorly driven by government regulatory bodies which is promoting the use of biosimulation in drug discovery and development process. Asian market is an emerging market with increase in the growth of drug manufacturers and CRO’s in the region as a result of which the biosimulation market is expected to grow considerably over the next few years.

Biosimulation is a highly competitive market with many companies trying to capture market share with their niche capabilities. This market is dominated by few players and rest of the market is highly fragmented. Accelrys, inc. dominates the market followed by Certara, Schrodinger, Simulation plus, ACD/Labs, Insilico BioTechnology and LeadScope offering a range of solutions in the drug discovery and development process. With many firms operating in niche areas like CNS modelling and simulation platform, Rhenovia Pharma SAS leads the market followed by Insilico Biosciences.

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